It was a period when private equity firms were gobbling up public companies in humongous multibillion-dollar takeovers. The 2007 litigation, along with a
Goldman will pay
"We think that the fact that two of the leading players in the industry have determined to settle the case for a substantial sum of money indicates that our case is strong and we look forward to going to trial," said
"The court never cited any evidence -- no document, no witness, no meeting -- tying our firm to any of the alleged claims. We continue to believe the case is meritless and baseless, but ultimately determined that it was best for our investors and our firm to put this matter behind us in light of the costs and distraction of six years of litigation," said Bain spokesman Ernesto Anguilla.
The suit was filed on behalf of former shareholders of a number of companies that were bought out between 2003 and 2007. One of the lead plaintiffs is
The former shareholders accused the private equity firms, which had formed bidding clubs, of abusing their market power by conspiring to rig artificially low purchase prices for companies they were buying, paying people less for their shares than they should have. Attorneys for the plaintiffs estimate that prices were deflated by 15-20 percent.
Such bidding clubs or teams have since fallen out of favor.
The initial litigation covered fewer than 10 buyout deals:
Last year, U.S. District Judge
Harrington has since retired, and the case is being handled by U.S. District Judge
Wildfang was colead counsel for U.S. retailers in last year's historic
(c)2014 the Star Tribune (Minneapolis)
Visit the Star Tribune (Minneapolis) at www.startribune.com
Distributed by MCT Information Services